Contents of the volume

2016, Volume 69 - Issue 4

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 13 October 2016

EMERGING MEGA-INTEGRATION BLOCS: LIMITS AND PROSPECTS

Miroslav N. Jovanovic

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WHY ISN'T EUROPE GROWING?

Matti Viren

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EMU AND THE ANCHORING OF INFLATION EXPECTATIONS

David Mayes, Maritta Paloviita, Matti Viren

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INTERNATIONAL EVIDENCE ON THE FINANCIAL KUZNETS CURVE

Imad Moosa

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COMPARISON OF THE FUNDAMENTAL AND MONETARY MODELS OF THE DETERMINANTS OF THE ARGENTINE PESO/US DOLLAR EXCHANGE RATE

Yu Hsing

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THE IMPACT OF RECENT CRISIS ON THE REAL ESTATE MARKET IN THE UAE: EVIDENCE FROM ASYMMETRIC METHODS

Safa Al-Mohana, Abdulnasser Hatemi-J

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WHAT DRIVES LONG-RUN ECONOMIC GROWTH? EMPIRICAL EVIDENCE FROM SOUTH AFRICA

Themba Chirwa, Nicholas Odhiambo

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Matti VIREN, University of Turku and Bank of Finland, Helsinki, Finland

Why isn't Europe Growing?

Pages

317-340

Abstract

This paper deals with the slowdown of economic growth in Europe. For that purpose, we focus on factors that affect the long-run growth path of different economies. Special emphasis is paid to institutional and structural factors that are often assumed to affect aggregate growth: functioning of labor markets, availability of labor and capital, and the size of government. For more explicit measures, we use the data on profit rates, average working hours, various dependency ratio indexes, tax rates, other measures of the size of government, and measures of price competitiveness.  Empirical analysis makes use of cross-country panel data from EU15 countries for 1971-2014. Estimation results suggest that profitability and competitiveness do indeed constitute the main determinants of growth. However, also other variables like average working hours and the size of government appear to affect growth in an important manner. All in all, slowdown of growth in Europe does not appear to be beyond reasonable explanations. Thus, more ambitious growth rates may be achieved with well-designed policies.

JEL classification

O40, O43

Keywords

Growth, Working Hours, Taxes, Competitiveness

Index

  1. Introduction
  2. The Model
  3. Interpretation of the Results
  4. Conclusions

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